Tuesday, October 05, 2010

Hutchison Warrants Sold

Hutchison Whampoa (13) has had a great run. While I purchased the shares too early and was sitting on an uncomfortably large loss for while, the shares are now solidly in the black.....which is a good thing because at current market prices they are my largest investment in the shares of a single company.

I also have some Hutchison warrants that were purchased back in July 2009 at HK10.4 cents. For a long time I was seriously underwater with paper losses in excess of 80%. The recent appreciation of the underlying share price has not only put me back in the money but has had the effect of making me seriously overweight Hutchison. Accordingly I sold the warrants this morning at HK14.4 cents for a gain of about 37% after transaction costs.

Now if only I had purchased the warrants when they were trading at less than 2 cents.....